Banking presentation

1. Your bank is different.
So you think.

2. Your Bank is Different. So you think.??
 Presentation : Abhijeet Kelkar : 85 mins
 Question Answer Session: All
 Important : This is NOT a one way Presentation.
This has the tone of a discussion and please feel
free to interrupt at any time during the discussion
and add your views.

3. Ever Imagined
This Guy would be the President of USA
 No political legacy like Hillary Clinton had
 No Military Service background like Mcain had
 First African American President : Changed image from
to

4. Ever Imagined : This Party would soon be Over. 22nd Sept 2011
Photo : Second Arab African summit in Sirte 10th October, 2010
Change happens very fast if the conditions are right (Wood,Fire)

5. Who started this
 Started by a street vendor in Tunisia : Mohamed Bouazizi (29 March 1984 – 4th
January 2011)
 We are now on October 6th 2011. Bouazizi was harassed on 16th Dec 2010
 Earning 140 Dollars per month selling fruits and getting his sister to college

6. Ever Imagined This
 China exceeds US as worlds largest economy
 Surpassed Germany in 2009 and catching up with Japan

7. What are the changes taking place which would affect
Banking
 Broadly the changes can be classified into Social and
Technological
 Social
 Technological
 The Biggest change is the thinking growing around the
world that :
CHANGE IS POSSIBLE

8. The Banking Model has Fundamentally not
changed in the last 100 years.
 Saving bank
 Commercial Bank
 Investment banking
 Central bank regulates the whole economy and will not change for some
time to come
 Basic model People and Companies are short of funds : We facilitate your
liquid fund quandary. We generate funds provided your business model
succeeds in generating more funds than us. Not noticing this
fundamental TRUTH led to the Banking crisis in 2008.
 Bank got its name from Italian word Banca or bench or counter used by
Italian bankers during Renaissance times.

9. Is banking going to stay the way it has been for
nearly the last 100 to 350 years.
 Retail Banking
 Checking Account
 Savings Account
 Money Market Account
 Certificate of Deposits,(CD's)
 Individual Retirement Accounts (IRA's)
 Credit card
 Debit card
 Mortgages
 Home Equity Loan
 Mutual Funds
 Personal Loan
 Consumer Financing
 Retail financing for retails chains
 Central Bank
 Regulates Money supply
• Business (or Commercial)
Banking
• Business loan
• Capital raising (Equity / Debt/ Hybrids
• Mezzanine finance
• Project finance
• Revolving credit
• Risk management (FX, interest
rates ,commodities, derivatives)
• Term loan
• Cash Management Services (Lock box,
Remote Deposit Capture, Merchant
Processing)
• Investment Banking
• Investment business
• Trading business
• Asset management

10. Where is GE Financial Services in relation to
number of retail and Commercial customers
D1; 2,7
B1,8; 3,2
C2,6; 1
A; 3
0
1
2
3
4
0 1 2 3 4 5
RetailBankB-C
Commercial Bank B-B
Size of the Circle denotes the overall business in
MUSD

11. What are the Social changes taking place
 Varying degrees across the world but the trend is towards social justice,
Openness, Human rights seen in countries like China, Social
representation seen in India, Women right to Votes in Saudi Arabia.
 Womens participation in micro finance in Bangladesh
 People are very aware about the Environment
 Connectedness of Business and Social Networks
 Arab Spring in North Africa
 Social and religious unrest in Iraq, Afghanistan, Pakistan
 Peoples movement in Burma
 Do Economic Freedom result in Social freedom. China will be a test case
as people get Economic independence will it translate to Democracy in
China.
 Economic and Political Migration is a continuing trend.
 Access to information
 Education of the masses
 More open personal information

12. What are the Technological changes taking place
 Biggest change is that in Telecom space
 Falling prices of data connectivity
 Rising bandwidth of 4G etc
 Connectivity to the masses
 A generation which grows up with the Internet from Kindergarten
 Access to social platforms like Facebook, Google+,Linkedin, Twitter, Youtube
 The technological and social changes run hand in hand. Use of Youtube, twitter
during the Arab spring.
 Cloud services is a hype but will be facilitated by moving towards open standards
 Rise of open standards and open sourcing like Wikipedia, Linux, Android etc
 Mobile usage
 Data anywhere access

13. Who are your future customers : Generation
2020 lets call them generation Z
 Gen Z grows up in the Internet world.
 Social Boundaries are breaking
 Always connected
 Where does work start and home end or vice versa
 Thinning boundaries between where you can work, from the golf course.?
 Using technology for communicating in ways not used earlier. London
riots on Blackberry
 Less Hirearchy across the world in Organisations
 Use Mobiles since 8 years old kids

14. What is the Paradigm shift because of above in
the commercial banking.?
 Some examples of Paradigm shift in commercial market
 Horse carriage Industry was replaced by cars 1900
 Railroad changed US trucking Industry 1910
 Shipbuilding Industry in Nordics around Goteborg 1970
 Swiss Quartz watches. Invented by Swiss, pioneered in the Market by the
Japanese 1970
 Computers pioneered by Apple, Intel Microsoft started the Personal computer
and brought IBM to its knees.
 Camera Film Industry Eastman Kodak replaced by Digital cameras 2000
 The Music industry is changed by IPod and Napster etc
 I phone change the paradigm of what a Mobile phone can do
 The Laptop replaces the Desktop and the I pad and tablets will replace the
Laptop. IBM sells its PC business to Lenovo and HP may follow.? 2011
 List goes on and on and on......... What happens to banking.??

15. What is the Value add of banks
 Zero interest financing.? Don't Kid me says the consumer. You need to make
money either from the retailer of from the customer who buys good.
 It is a dependant business which means alternate business models
 It is a generic model which means low entry barriers.
 Has some governmental regulations which keeps entry barriers regulated.
 What and where is the Value add.?
 ........................ ??
 ........................ ??

16. What Value add do banks Offer
WHAT
 Trust.? Questionable with the Recent Financial crisis
 But still there is trust that the Government will come to the rescue of banks, so in
a way it is deferred Trust.
 Established channels and a way of doing business.
 Safekeeping Money
 Established Government regulations.
 Ease of doing business.? Not necessarily.
 Liquidity for businesses.

17. Whom do they offer
WHO
 B-C customers in retail banking
 B-B customers in Commercial banking
 B customers in Investment banking
 TAKE NO RISK. Well that is not the model of most businesses.

18. How do we offer
HOW
 B-C customers in retail banking
 B-B customers in Commercial banking
 B customers in Investment banking
 How : Electronic, Web and traditional methods.
 TAKE NO RISK. Well that is not the model of most businesses.

20. The Banking Model has Fundamentally not
changed in the last 100 years.
 Saving bank
 Commercial Bank
 Investment banking
 Central bank regulates the whole economy and will not change for some
time to come
 Basic model People and Companies are short of funds : We facilitate your
liquid fund quandary. We generate funds provided your business model
succeeds in generating more funds than us. Not noticing this
fundamental TRUTH led to the Banking crisis in 2008.
 Bank got its name from Italian word Banca or bench or counter used by
Italian bankers during Renaissance times.

21. New Players on the block in payments and lending area But what
about the real competitors who are yet to come.? Ahead..
Old Players New Players
OldmarketsNewMarkets

22. Will the change take place? Are the conditions right for
change ...
Wood , Dry conditions and a spark for a Fire.??

23. So Who are the new Competitors.. who are yet to
come in.??
And Why should the established companies be
afraid.

24. Remember Airlines Industry and which is the most
profitable Airlines Company in Europe.??

25. 1.And sell Sandwiches on board and
2. Charge your luggage and
3. Land you at cheap airports and
4. Charged you to use the Loo on the plane.
5. And have no seating booking system
And by the way.......
They also fly Airlines.
And what you buy above other than cheap flying.
The control on Money is with you.

26. They changed the paradigm from Flying and
Expensive to cheaper than the Bus Ticket.

27. Someone has to realise where the Focus is
The Emperor is Naked

28. A battlefield General examining the lay of the land

29. The focus has to be on where it
has not been
The Customer : You

30. Similarly your new competitors will be
YOU

31. Sorry
ME

32. ME or I
As in
Facebook, Google+, Linkedin etc

33. Identity Platforms with
Mobile Operators

34. Why.???
 4 mobile Operators in a country can cover 95% of the
paying population in any country. Similar in all
countries.
 You are available any time with your mobile Id.
 You can find an acceptable way of communication
through an identity company. I control how a retailer
communicates with me, how he sends coupons to me.
How he uses my information. Etc etc
 Once you have the loyalty programs on phone
irrespective of Operators. What happens.
 YOU ARE IN CONTROL SUBJECT TO ACCEPTED
NORMS

35. IPCT Platforms
 1. Facebook Bank AB
 2. ICA Consumer Finance AB
 3. TeliaSoneraLinkedin AB
 4. LinkedinMoney AB
 5. Zhinga ChinaMoney.com
 6. Virtual Ownership Platform
 7. GoGreen.com

36. 12/7/2018 36
The year is 1971 and you need to exchange cash ”N” number
of times to travel in Europe…
The year is 2001 and you need to wade through N” of websites
to get the right info…
The year is 2021 and you own ”N” number of devices and
goods ...
PARADIGM SHIFT
GEO WN
GEOOWN AB

37. 12/7/2018 37GEOOWN AB